Headlands Technologies LLC Invests $6.49 Million in The Home Depot, Inc. (NYSE:HD)

Key Points

• Headlands Technologies LLC acquired a new position in The Home Depot, purchasing 17,707 shares valued at approximately $6.49 million, making it the firm's 29th largest investment.
• Home Depot's earnings report revealed a miss in EPS expectations for the latest quarter, reporting $3.56 instead of the anticipated $3.59, though revenue increased to $39.86 billion, surpassing projections.
• The company recently declared a quarterly dividend of $2.30 per share, resulting in an annualized dividend yield of 2.4% with a payout ratio of 62.42%.

Headlands Technologies LLC bought a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 17,707 shares of the home improvement retailer's stock, valued at approximately $6,489,000. Home Depot comprises 0.7% of Headlands Technologies LLC's holdings, making the stock its 29th largest holding.

A number of other hedge funds have also modified their holdings of HD. Financial Gravity Asset Management Inc. acquired a new position in Home Depot during the first quarter worth $406,000. Wealth Management Partners LLC lifted its stake in Home Depot by 0.6% during the first quarter. Wealth Management Partners LLC now owns 6,506 shares of the home improvement retailer's stock worth $2,384,000 after purchasing an additional 36 shares in the last quarter. Arbor Capital Management Inc. ADV lifted its stake in Home Depot by 4.8% during the first quarter. Arbor Capital Management Inc. ADV now owns 4,784 shares of the home improvement retailer's stock worth $1,757,000 after purchasing an additional 221 shares in the last quarter. ARS Wealth Advisors Group LLC lifted its stake in Home Depot by 0.8% during the first quarter. ARS Wealth Advisors Group LLC now owns 31,728 shares of the home improvement retailer's stock worth $11,628,000 after purchasing an additional 239 shares in the last quarter. Finally, Tabor Asset Management LP acquired a new position in Home Depot during the first quarter worth $5,886,000. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Home Depot Price Performance

HD stock traded up $1.60 during trading on Friday, hitting $387.77. The stock had a trading volume of 2,326,668 shares, compared to its average volume of 3,127,176. The company's 50 day moving average price is $367.64 and its two-hundred day moving average price is $372.52. The Home Depot, Inc. has a 1-year low of $326.31 and a 1-year high of $439.37. The stock has a market cap of $385.80 billion, a price-to-earnings ratio of 26.31, a price-to-earnings-growth ratio of 3.67 and a beta of 1.00. The company has a debt-to-equity ratio of 5.95, a quick ratio of 0.28 and a current ratio of 1.09.

Home Depot (NYSE:HD - Get Free Report) last announced its earnings results on Tuesday, May 20th. The home improvement retailer reported $3.56 earnings per share for the quarter, missing the consensus estimate of $3.59 by ($0.03). Home Depot had a net margin of 8.98% and a return on equity of 242.51%. The firm had revenue of $39.86 billion during the quarter, compared to analyst estimates of $39.24 billion. During the same period in the previous year, the firm posted $3.63 EPS. The company's revenue for the quarter was up 9.4% compared to the same quarter last year. On average, sell-side analysts forecast that The Home Depot, Inc. will post 15.13 EPS for the current fiscal year.

Home Depot Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 18th. Investors of record on Thursday, June 5th were given a dividend of $2.30 per share. This represents a $9.20 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Thursday, June 5th. Home Depot's dividend payout ratio is 62.42%.

Insider Buying and Selling

In related news, EVP Teresa Wynn Roseborough sold 5,406 shares of the stock in a transaction that occurred on Wednesday, May 28th. The shares were sold at an average price of $369.28, for a total transaction of $1,996,327.68. Following the completion of the sale, the executive vice president owned 17,367 shares of the company's stock, valued at approximately $6,413,285.76. This represents a 23.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Fahim Siddiqui sold 2,600 shares of the stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $367.14, for a total transaction of $954,564.00. Following the sale, the executive vice president directly owned 7,951 shares of the company's stock, valued at approximately $2,919,130.14. This trade represents a 24.64% decrease in their position. The disclosure for this sale can be found here. 0.10% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on HD shares. Royal Bank Of Canada lowered their price objective on shares of Home Depot from $424.00 to $399.00 and set a "sector perform" rating for the company in a research note on Thursday, May 15th. Evercore ISI set a $400.00 price target on shares of Home Depot and gave the stock an "outperform" rating in a research note on Thursday, May 22nd. Sanford C. Bernstein reiterated a "market perform" rating and issued a $398.00 price target (up previously from $380.00) on shares of Home Depot in a research note on Wednesday, May 21st. Truist Financial lifted their price target on shares of Home Depot from $393.00 to $417.00 and gave the stock a "buy" rating in a research note on Tuesday, May 20th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Home Depot from $410.00 to $418.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 21st. Seven equities research analysts have rated the stock with a hold rating, twenty have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $426.77.

About Home Depot

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.